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The "Great Rotation" is getting legs as $11.3B has gone into global stock mutual funds in the...
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Friday, January 18, 8:26 AM ETThe "Great Rotation" is getting legs as $11.3B has gone into global stock mutual funds in the last 2 weeks - the largest 2-week inflow since April 2000 (how'd that one work out?). The theory - open for discussion - is mutual fund flows reflect "Mom and Pop" activity, while ETF flows - money left in the last week - are more dominated by the institutional and trading set.
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"So Much For That "Record Inflow" Into Equity Funds - Domestic Equities See $4.2 Billion Outflow In Most Recent Week"
many advantages of ETFs over mutual funds...
http://bit.ly/Wdi06x
I suspect any changes here will be rather glacial. Mom and Pop don't "see" advantages (or much else); that's why they're in mutual funds to begin with. Many are held in 401K's, IRA's and other personal accounts that don't have brokerages involved (i.e., funds were/are invested directly) nor get any active oversight or management.
will be considerable say from 6% to 10% or maybe 15% but the actual percentage will still be quite small.
Or as people learn about ETFs, they learn that most of these funds can be shorted and have derivative products. Not necessarily bad, but people may feel that their money should not be placed into a churning froth of activity and told that things are safe.
but global indicators look good for equities based on currency devaluation throughout the world....QE will spread like the flu...